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DECISION No. 206/2004/QD-TTg OF DECEMBER 10, 2004 APPROVING THE STRATEGY ON DEVELOPMENT OF VIETNAM’S COMMUNICATION AND TRANSPORT TILL 2020

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

At the proposal of the Transport Ministry (in Report No. 5145/GTVT-KHDT of December 31, 2002 and Document No. 3406/2004/BGTVT of July 8, 2004) and opinions of the Planning and Investment Ministry (Documents No. 4955-BKH/KCHT&DT of August 14, 2003 and No. 1026-BKH/KCHT&DT of February 26, 2004) on the Strategy on Development of Vietnam’s Communication and Transport till 2020,

DECIDES:

Article 1.- To approve the Strategy on Development of Vietnam’s Communication and Transport till 2020 with the following principal contents:

I. Viewpoint and objectives of Vietnam’s communication and transport development till 2020

1. Development viewpoint:

- Communication and transport constitute an important part of the socio-economic infrastructure, which need to be developed one step ahead in a speedy and stable manner with investment priority in order to create a prerequisite for socio-economic development, defense and security consolidation and serve the national industrialization and modernization.

- To bring into the fullest play the advantages of the country’s geographical position and natural conditions for the development of a rational system of communication and transport, with a view to minimizing transport costs and saving social expenditures.

- To develop the traffic infrastructure in a synchronous and rational manner into a gradually modernized one, thus creating a complete network with interrelations and interconnections among transport modes, territorial regions, and between urban centers and rural areas throughout the country.

- To attach importance to the maintenance of the existing traffic infrastructure, ensuring the efficient and sustainable exploitation thereof. At the same time, to intensify the upgrading and building of traffic infrastructure works which can bring about socio-economic efficiency, first of all the North-South axis, key economic regions, outbound traffic axes, big cities and regions of significant importance in the hunger eradication and poverty alleviation strategy and in service of security and defense.

- To develop transport along the direction of modernity with reasonable costs, safety and minimum environmental impacts and consumed fuels; to apply advanced transport technologies, especially the multi-modal transport; to quickly renovate transport means; to raise the transport service quality, and concurrently rapidly develop the system of outbound transport services, first of all air and sea transport, with a view to enhancing the competitiveness and creating conditions for accelerating the international integration.

- To prioritize the renovation, upgrading and intensive investment in promoting efficiency of existing communication and transport industry establishments, to quickly renew technology and approach modern technologies, to step by step raise the localization rate and proceed to manufacture transport means, especially in shipbuilding and automobile manufacture, for domestic consumption and export to countries in the region and the world.

- To develop the external communication and transport system closely combined with the domestic communication and transport system, promptly satisfying the requirements of international and regional integration.

- To develop communication and transport in urban centers along the direction of using largely mass transit means which are modern, safe, convenient and environment-friendly. For big cities (Hanoi city and Ho Chi Minh city in the immediate future), to expeditiously develop the massive transport mode (railway transport); to control the growth of personal travel means; to solve traffic congestion and ensure urban traffic safety.

- To vigorously develop the local communication and transport to meet the requirements of the agricultural and rural industrialization and modernization, to link local communication and transport networks with the national communication and transport networks, thus creating interconnection and smoothness in transport with reasonable costs suitable to the majority of population.

- To mobilize to the utmost all resources, with special importance attached to domestic resources in all forms and from all economic sectors, for investment in communication and transport development. To socialize the investment in development of traffic infrastructure, first of all road traffic infrastructure: users of traffic infrastructures shall have to make contributions for maintenance and re-investment in traffic infrastructure construction.

- To reserve a rational land fund for development of traffic infrastructure and assurance of traffic safety corridors. The land use planning for traffic infrastructure should be implemented with unanimity and synchronous and close coordination among the ministries, branches and localities.

2. Development objectives:

Vietnam’s communication and transport must develop synchronously in terms of infrastructure, transportation and communication and transport industry along the direction of industrialization and modernization, thus creating a complete communication and transport network capable of combining and interconnecting transport modes, ensuring smooth, quick, safe and convenient traffic throughout the country, up to the level of the advanced countries in the region, achieving the objective of making Vietnam basically an industrialized country by 2020, and satisfying the international and regional integration requirements.

a/ Regarding transport

To satisfy the society’s diversified transport demands with a high growth rate, ensuring higher and higher quality and reasonable costs; to curb the rise in then proceed to reduce traffic accidents and minimize the environmental impacts.

b/ Regarding the communication and transport infrastructure:

To develop the traffic infrastructure, in the immediate future, to concentrate on technical standardization and upgrading of the existing works while building new ones in active service of socio-economic development at the central and local levels. In the 2010-2020 period, to improve, modernize and further develop the traffic infrastructure so as to ensure the optimal transport in the entire network. Specific objectives towards 2020 of each specialized sector shall be as follows:

Roads: The entire system of national highways and almost all provincial roads must be up to their correct technical standards; to expand and build new national highways through areas with great transport demands; to build the system of express ways in the important transport corridors. The outbound road sections must attain the technical standards of regional roads.

Railways: To complete the renovation and upgrading of the existing railway routes up to the technical standards of national and regional railways; to step by step build the new network of express railways and high-speed railways; to prioritize the building of the North-South express railway.

Seaways: To complete the expansion and upgrading of the major national general ports; to build deep-water ports in the three key economic regions; to develop international entrepot ports to receive ships of high tonnage, thus meeting the transport demands.

Riverways: To raise the total length of rivers and canals for transport exploitation and management; to upgrade the system of main riverways in the central and local networks of riverways up to the prescribed technical standards; to make intensive investment in and upgrade the existing cargo and passenger ports and build new ones, especially in the Red River and Mekong River deltas.

Airways: To upgrade and expand the existing international airports-airfields and build new ones with sizes and technical standards being equal to those of regional countries. To complete the building and upgrading of domestic airfields to meet the international standards.

Urban traffic: To rationally develop the urban traffic infrastructure and the mass transit system; to reserve a land fund for urban traffic equal to between 15 and 25% of the total urban land area. For big cities, to continue building and improving the mass transit system, particularly tramways, overhead railways and subways, in order to solve traffic congestion and accidents.

Rural traffic: To build rural traffic roads for motorized transport means to all commune or commune cluster centers, which are capable of ensuring non-interrupted traffic all year round. The percentage of asphalt roads and concrete roads shall reach over 50%.

c/ Regarding communication and transport industry:

Shipbuilding industry: To build seagoing ships of a tonnage of up to 100,000 DWT; to repair seagoing ships of a tonnage of up to 400,000 DWT; to step by step satisfy the domestic and export demands; to strive to raise the localization rate to 70%.

Automobile and construction vehicle and machinery industry: To form the automobile and construction vehicle and machinery industry; to quickly raise the localization rate to over 60%. Vietnam’s automobile industry shall develop along the direction of satisfying 80% of the demand for ordinary automobiles and 60% of the demand for special-use and high-class automobiles and exporting some products.

Locomotive-train car industry: To build assorted cargo wagons and passenger train cars which are modern, comfortable and diverse in types for domestic use and export. To manufacture some spare parts and accessories, and assemble modern locomotives of all types.

Aviation industry: To undertake the maintenance and minor repair of assorted airplanes currently in exploitation. To overhaul some types of airplanes, airplane engines and equipment. To manufacture some airplane spare parts to substitute imports.

II. THE STRATEGY ON DEVELOPMENT OF VIETNAM’S COMMUNICATION AND TRANSPORT TILL 2020

1. The strategy for development of traffic infrastructure

To concentrate investment in, renovate and upgrade the existing traffic infrastructure system in combination with the building of other important works, prioritizing works in the three key economic regions and traffic hubs, in order to form a modern communication and transport network with interrelations and interconnections among transport modes, thus ensuring non-interrupted traffic, saving transport construction and exploitation investment costs.

a/ On the North-South axis:

To complete the upgrading and expansion of National Highway 1A from Huu Nghi Quan (Friendship border-gate) to Nam Can; to link sections of and upgrade the entire Ho Chi Minh Road from Cao Bang province to Dat Mui (Ca Mau province); to build the North-South express-way from Lang Son to Ca Mau; to complete the upgrading of Thong Nhat (Unification) railway up to the national and regional technical standards and the building of a new one to form a dual railway, and electrify Hanoi – Vinh and Sai Gon - Nha Trang routes. To study and step by step build the North-South express railway.

b/ In the Northern region:

To develop the traffic infrastructure in the Northern region with the Northern key economic region being the crux, focusing on the following tasks:

To build the express ways: Hainoi – Hai Phong; Noi Bai - Ha Long - Mong Cai; Hanoi – Viet Tri – Yen Bai – Lao Cai; Hanoi – Thai Nguyen; Lang Son – Hanoi – Vinh (on the North-South express way); Lang – Hoa Lac – Trung Ha; Hoa Lac – Tan Ky, belt road III, belt road IV, belt road V in Hanoi; to complete the upgrading of national highways in the key economic region: National highways Nos. 5, 10, 18, 12B, 21, 21B; to upgrade national highways Nos. 1B, 39, and 38; to upgrade the radial road axes from Hanoi city to the northern provinces and the border-gates, including national highways Nos. 2, 3, 6, 32 and 70. To thoroughly link and wholly upgrade the national highways in the northern belt road system: Belt I (national highways Nos. 4A, 4B, 4C, 4D, 4E, 4G and 34), belt II (national highways Nos. 279 and 12) and belt III (national highway 37); to study and build borderline belt routes; to build detours bypassing submerged areas once Son La hydroelectric power plant is put under construction.

To build high-speed railways of Hanoi – Hai Phong and Hanoi – Dong Dang; to renovate and upgrade railways of Hanoi – Lao Cai; Hanoi – Lang Son; Luu Xa – Kep – Ha Long; to build new railway sections of Thai Nguyen – Yen Bai; Yen Vien – Pha Lai and Ha Long – Cai Lan.

To complete the technical standardization of, and ensure the round-the-clock navigation in, important waterway routes of Cua Day – Ninh Binh; Lach Giang – Hanoi; Hanoi – Viet Tri; Hai Phong – Ninh Binh; Hai Phong – Hanoi through Duong river; Quang Ninh – Hai Phong – Ninh Binh through Luoc river; Quang Ninh – Pha Lai through Chanh, Da Bach and Kinh Thay rivers; Viet Tri – Tuyen Quang, and Hanoi – Lao Cai. To upgrade the existing ports and build some new ports, especially in port clusters of Hanoi – Khuyen Luong; Ninh Binh – Ninh Phuc; Viet Tri and Hoa Binh.

To expand and upgrade Hai Phong and Cai Lan ports; to build domestic container wharves and yards; to build access deep-water port of Lach Huyen in the northern region to receive ships of a tonnage of between 50,000 and 80,000 DWT.

To develop Noi Bai international airport-airfield into a cargo and passenger transit spot of the regional competitiveness and international standards; to upgrade and build domestic airports of Cat Bi, Dien Bien, Na San, Gia Lam, Cao Bang and Lao Cai up to the international standards for domestic airports.

c/ In the Central region

To develop the traffic infrastructure in Central Vietnam, with the Central key economic region being the crux, focusing on the following tasks:

To build express road sections of Da Nang – Quang Ngai; Da Nang – Hue – Quang Tri (on the North-South express way) and the Central Highlands express way section of Ngoc Hoi – Chon Thanh. To upgrade and build roads within the East-West corridor and cross-cut roads linking the coastal region with the Central Highlands provinces, linking Vietnamese seaports with such neighboring countries as Thailand, Laos and Cambodia, including: National highways Nos. 45, 46, 48, 7, 8A, 12A, 9, 217, 49, 14D, 14E, 24, 19, 25, 26, 27, 27B, 28 and 40; the sections of national highway No. 14C along the Vietnam-Laos-Cambodia borderline; to solidify flooded road sections, thus ensuring their regular exploitation. To build roads west of the central provinces from Thanh Hoa, Nghe An to Quang Nam. To build eastern Truong Son road from Da Nang to Lam Dong.

To study and build the railway section of Vung Ang – Vietnam-Laos border being a branch of the Trans-Asian Railway of Singapore – Kun Ming.

To build, upgrade and expand seaports of Cua Lo, Nghi Son, Vung Ang and Chan May, Da Nang seaport clusters (Tien Sa and Lien Chieu), Quy Nhon, Ba Ngoi, Nha Trang and Dung Quat; to build Ky Ha seaport in service of Chu Lai open economic zone; to study and build Van Phong international entrepot port for container ships of a tonnage of 4,000-6,000 TEU and oil tankers of a tonnage of up to 240,000 DWT.

To develop Da Nang international airport-airfield; to restore and upgrade Chu Lai airport into a reserve international airport and a regional cargo-entrepot airport; to upgrade and build domestic airports of Vinh, Dong Hoi, Phu Bai, Phu Cat, Cam Ranh, Nha Trang, Dong Tac, Lien Khuong, Pleiku, Buon Ma Thuot, Ai Tu and Kon Tum up to the international standards applicable to domestic airports.

d/ In Southern region:

- Eastern South Vietnam

To develop the traffic infrastructure in eastern South Vietnam with the southern key economic region being the crux, focusing on the following tasks:

To build the express ways of Ho Chi Minh city – Long Thanh – Dau Giay – Phan Thiet (part of the North-South express way); Ho Chi Minh city – Long Thanh – Vung Tau; Ho Chi Minh city – Thu Dau Mot – Chon Thanh; Dau Giay – Da Lat, belt road III and belt road IV of Ho Chi Minh city; to complete the upgrading of national highway No. 13, expanded national highway No. 14C, national highways Nos. 20, 22, 22B, 55 and 56.

To build a new high-speed railway of Ho Chi Minh city – Vung Tau, and new railway of Di An – Chon Thanh – Dak Nong; to restore and build the railway of Ho Chi Minh city – Loc Ninh.

To upgrade and renovate the riverway routes of Ho Chi Minh city – Ben Keo and Ho Chi Minh city – Ben Suc; to build and upgrade cargo and passenger river ports.

To renovate, upgrade and build the following three seaport clusters:

1. Ho Chi Minh city seaport cluster consisting of Sai Gon port area on Sai Gon river, Nha Be port area on Nha Be river, Cat Lai port area on Dong Nai river and Hiep Phuoc port area on Soai Rap river in direct service of the goods export and import of Ho Chi Minh city and the southern key economic region. By 2008, Sai Gon port area shall be relocated. To invest in the development of Ho Chi Minh city port cluster in Cat Lai area, Hiep Phuoc port area and Nha Be general port area.

2. Dong Nai port cluster consisting of Dong Nai port area on Dong Nai river, Phu Huu port area on Long Tau – Nha Be river, Ong Keo port area on Long Tau river, Go Dau A and Go Dau B port areas, Phuoc An port area on Thi Vai river, mainly in service of industrial parks in Dong Nai province.

3. Ba Ria – Vung Tau port cluster consisting of Go Dau C port area, Phu My port area, Cai Mep port area on Thi Vai river, Vung Tau port area (Ben Dinh – Sao Mai) and Dinh river port area on Dinh river. This port cluster plays the role of an international access port, serves the industrial parks in the locality and renders supports for Ho Chi Minh city and Dong Nai port clusters.

To develop Tan Son Nhat international airport-airfield into a cargo and passenger transit spot of regional competitiveness and international standards; to study and build Long Thanh international airport-airfield.

- Western South Vietnam

To build the express ways of Ho Chi Minh city - Can Tho and Can Tho – Bac Lieu (part of the North – South express way). To upgrade and build three main longitudinal axes (national highway 1A, N1 and N2 routes); one coastal axis (national highways Nos. 60 and 50); sub-regional axes (Southern Hau river route, Quan Lo – Phung Hiep route); latitudinal axes (national highways Nos. 30, 53, 54, 57, 61, 62, 63, 80 and 91).

To study and build the high-speed railway of Ho Chi Minh city – Can Tho.

To complete and technically standardize, ensuring the round-the-clock navigation on, the four main waterway routes: Ho Chi Minh city – Kien Luong through Sa Dec – Lap Vo canal; Ho Chi Minh city – Kien Luong through Dong Thap Muoi; Ho Chi Minh city – Ca Mau through Xa No canal; Ho Chi Minh city –Moc Hoa; and two international routes: Cua Tieu – Hong Ngu and Can Tho – Tan Chau. To upgrade the coastal routes of Ho Chi Minh city – Ben Tre – Tra Vinh – Bac Lieu – Ca Mau, and Dai Ngai – Bac Lieu – Ca Mau.

To expand and upgrade Can Tho port consisting of Hoang Dieu, Cai Cui and Tra Noc areas into a main port cluster of western South Vietnam. To upgrade and renovate Dinh An port for ships of a tonnage of 20,000 tons. To study the building of one big port for western South Vietnam.

To restore, renovate and upgrade the domestic airports of Ca Mau, Phu Quoc, Rach Gia and Con Son. To upgrade Can Tho airport into an international airport, and to invest in its facilities to meet the domestic transport demands in the immediate future.

2. The transport development strategy

a/ The general strategy:

To invest in the balanced development of various transport modes and services, making the fullest use of advantages of geographical position and natural conditions, in order to reduce transport costs, save social expenditures, promote the international integration, ensure safety, convenience and environmental protection on the basis of:

- Rationally using different transport modes: Road transport is largely for carrying cargoes and passengers within provinces, for short distances of under 300 km, rallying goods and creating goods supply sources; railway transport is largely for carrying cargos and passengers for long distances of over 300 km and with large quantities as well as for transportation of passengers between cities and mass transit in big cities; sea shipping is largely for carrying cargos on the coastal routes for distances of over 800 km and ocean shipping routes. Studying and organizing transport activities in order to promote the North-South seaway transport in order to reduce pressure on road transport. Encouraging and working out plans on development of inland waterway transport in localities with favorable natural conditions, especially in the Red river delta and Mekong river delta. Studying and organizing the transport of cargos by large-tonnage waterway transport means to river ports of the Mekong river delta, in order to raise economic efficiency and boost the regional production, and reduce pressure on road transport to Ho Chi Minh city. Air transport is largely for carrying passengers on long-distance and international routes.

- Transport means must be suitable to the nature and characteristics of transported goods, transport distances and conditions of the traffic infrastructures. Raising the loading-unloading mechanization rate.

- Investing in synchronous development of traffic infrastructures, transport means, loading and unloading technologies of transport modes; perfecting and supplementing laws, regulations and statutes to make them compatible with international practices, in order to strongly develop multi-modal transport.

- Developing sea transport to increase the percentage of shipped export and import cargo volumes. Opening new medium- and long-distance international flight routes and raising the percentage of airborne international passengers to/from Vietnam. Improving the procedures for transit, border entry and exit, thus creating favorable conditions for development of transit road, railway and riverway transport with neighboring countries.

b/ Orientations for development of transport means:

Road transport: To step by step curb the growth rate of motorbike number and control the increase of number of private cars, especially in big cities. Transport means must be compatible with road and bridge structures, ensure the environmental standards and permitted technical speeds and be suitable with types of cargos and passengers to be transported.

Railway transport: To use locomotives of a capacity of between 1,500 and 2,800 CV; cargo wagons must ensure safety and carrying capacity according to standard of 16 tons/axis for 1,000-mm railways and 19 tons/axis for 1,435-mm railways. Passenger train cars must be comfortable, safe, with civilized and well-mannered services. To attach importance to the development of container wagons of 20 feet or 40 feet, which can actively take part in the multi-modal transport to enhance the social transport efficiency.

Sea transport: To use ships of sizes and types suitable with different cargo types, transport distances and volumes on each route: Bulk cargos to Asian countries shall be carried largely by ships of a tonnage of between 15,000 and 20,000 DWT; cargos to North America, Europe and Africa shall be carried largely by ships of a tonnage of between 30,000 and 50,000 DWT; cargos on domestic routes shall be carried by ships of a tonnage of between 3,000 and 5,000 DWT; sundries to Asian countries shall be carried largely by ships of a tonnage of between 10,000 and 15,000 DWT; those to North America, Europe and Africa shall be carried largely by ships of a tonnage of between 20,000 and 30,000 DWT; those on domestic routes shall be carried by ships of a tonnage of between 1,000 and 5,000 DWT; containers to Asian countries shall be carried largely by ships of a tonnage of between 1,500 and 3,000 TEU; those to North America, Europe and Africa shall be carried largely by ships of a tonnage of between 4,000 and 6,000 TEU; those on domestic routes shall be carried by ships of a tonnage of between 500 and 1,000 DWT; for oil products, tankers of a tonnage of between 30,000 and 40,000 DWT shall be used for Asian routes and of between 3,000 and 10,000 DWT for domestic routes; for crude oil, tankers of a tonnage of 100,000 DWT shall be used.

Inland waterway transport: On riverway routes in the Red river delta, cargo ships shall be tug convoys of a tonnage of between 1,200 and 1,600 tons, self-propelled ships of 200-300 tons, while passenger ships shall be ships with between 50 and 120 seats; on the riverway routes in the Mekong river delta, cargo ships shall be tug convoys of a tonnage of between 1,200 and 1,600 tons, self-propelled ships of 200-400 tons, while passenger ships shall be ships with between 50 and 120 seats.

Air transport: Short-distance passenger airplanes (with between 40 and 80 seats) shall be those of ATR72/42 and the like; short-medium-distance airplanes (with between 120-220 seats) shall be those of A318/319/320/321 and the like, medium-long-distance and long-distance airplanes shall be those of B777-200/B777-300 models and the like. Regarding other types of airplanes: to select and purchase more freighters and combination airplanes; air taxis for domestic service as well as helicopters and fixed-wing aircrafts exclusively used in service of the national economy or for search-rescue purpose.

3. The strategy for development of urban communication and transport and urban traffic hubs

a/ Regarding infrastructures:

The urban traffic infrastructure, especially traffic hubs in big cities must be developed with priority synchronously with other technical infrastructure works in order to form the rational and complete urban infrastructure which can satisfy the social transport demand and efficiently serve the socio-economic development of cities.

To ensure the land fund of 15-20% of the total urban land area for urban traffic, including both static traffic and mobile traffic, till 2020.

To diversify the system of infrastructures in service of mass transit, in order to ensure the urban traffic order and safety and environmental protection.

To build the massive transport system for Hanoi city and Ho Chi Minh city, including tramways, overhead railways, subways, etc. For the period from now till 2010, apart from the upgrading and renovation of the existing infrastructure system, to concentrate on building radial roads, belt roads, urban main axes and interchanges; to develop the static traffic system and infrastructure in service of bus transport, and at the same time to expeditiously build a number of subway, tramway and overhead railway lines in Hanoi and Ho Chi Minh cities.

b/ Regarding transport:

To give priority to the development of mass transit, especially large-quantity public passenger transport modes, ensuring the mass transit ratios of 25-30% by 2010 and 50-60% by 2020 in big cities. To limit the motorbike number, and at the same time adopt rational solutions to development of private cars, especially in two big cities of Hanoi and Ho Chi Minh city.

To organize the management of urban traffic in a scientific manner with the application of modern technologies and equipment such as traffic signals, control posts and camera systems, etc., in order to ensure the smooth and safe traffic and environmental protection.

4. The strategy on rural traffic development

To maintain, consolidate and upgrade the existing traffic networks according to the technical standards applicable to rural traffic roads, thus satisfying the requirements of agricultural and rural mechanization.

To concentrate on building roads to centers of communes and commune clusters where no road exists, to agricultural and forestry farms, rural industrial spots. To continue building the inter-village and inter-commune road systems to form the synchronous traffic networks to villages and communes; to connect the rural traffic network with the national traffic network. To step by step build the system of overbridges and flyovers at intersections between express ways, national highways and local roads, ensuring traffic safety.

In the Mekong river delta, to combine road traffic with waterway navigation, traffic with irrigation to form land routes leading to villages, communes and densely populated quarters, thus meeting the requirements of co-existence with floods and exploitation of the advantages of waterway transport.

To renovate and build the system of bridges and culverts up to the technical standards.

To develop small-sized motorized transport means suitable with the conditions of rural traffic infrastructure. To ensure that transport costs are suitable with living conditions of the majority of population.

5. Traffic safety and environmental protection

a/ Regarding traffic safety:

The development of communication and transport system must be closely associated with the assurance of traffic safety and the minimization of traffic accidents.

To ensure traffic safety, in the process of developing the communication and transport system, it is necessary to:

- Promulgate technical and quality standards of traffic works and transport means, compatible with the traffic safety requirements.

- Raise the quality of training of transport means operators.

- Intensify the traffic safety propagation and education among population in order to raise their sense of traffic rule observance.

- Study and promulgate traffic safety rules.

b/ Regarding the environment in communication and transport:

- To conduct the investigation, analysis and assessment of environmental impacts in the process of building and exploiting the communication and transport system.

- To study and propose solutions to minimization of environmental impacts in the process of building and exploiting the communication and transport system.

- To study mechanisms and policies for environmental protection in the domain of communication and transport.

III. MAJOR SOLUTIONS AND POLICIES

1. Solutions and policies to create capital for development of traffic infrastructures

To increase the annual State budget investment in traffic infrastructures to around 3% of the GDP.

To promote the internal strength and create favorable conditions for attraction of investment capital from all economic sectors for traffic infrastructures in various forms: Issuance of bonds, build-operate-transfer (BOT); build-transfer (BT); investment-collection of tolls for recovery of investment capital, transfer of right to collect tolls, etc., to strive to satisfy 40-50% of the total demanded investment capital for traffic infrastructures.

To continue making the fullest use of official development assistance capital sources of foreign countries in diversified forms.

To study the setting up of the fund for maintenance and development investment of traffic infrastructures, first of all the fund for road maintenance.

To adopt appropriate policies on ground clearance compensations so as to reduce investment expenses.

2. Solutions and policies to develop transport

a/ Encouraging all economic sectors to engage in transport business:

To encourage all economic sectors to engage in business activities in the transport domain. To step up the equitization of State-owned enterprises. To ensure that State-owned enterprises account for a percentage necessary for transport in service of remote and deep-lying areas, islands and other contingency tasks.

b/ Creating a healthy and fair competitive environment for all economic sectors engaged in transport business:

All means used by various economic sectors in transport business must ensure the technical standards on transport safety and environmental protection, and the means owners must fulfill all contribution obligations toward the State (taxes, charges, etc.) at reasonable contribution levels.

To formulate the system of reasonable freight charges applicable to different transport modes, to be used by the State as a macro-management tool.

c/ Raising the quality of transport and transport services:

To renovate transport means in terms of quality and types to suit the requirements of cargo and passenger transport on transport routes and the infrastructure conditions.

To vigorously develop the multi-modal transport in cargo transportation, and to ensure “door to door” delivery, thus creating favorable conditions for cargo owners.

To prescribe and regularly inspect the quality of transport means and services on inter-provincial passenger transport routes, ensuring passengers’ interests.

To diversify transport services with a view to ensuring promptness, safety and convenience and saving social expenditures.

d/ Enhancing and promoting the role of agencies and associations in protecting interests of users of communication and transport services:

To reorganize the system of agencies, organizations and associations protecting customers’ interests. To organize the system of their offices nationwide.

The said agencies and associations shall participate in regular and irregular inspection teams to promptly handle violations of transporters.

To enhance the propagation so that customers can be aware of their interests and contact and cooperate with the functional agencies and associations when detecting that their interests are infringed upon.

3. Solutions and policies to develop the communication and transport industry

Permitting domestic communication and transport industry establishments to enter into joint ventures with foreign parties in order to get the best of the latter’s capital sources, technologies as well as administration and management experiences, and adopting the localization roadmap.

Establishing financial hire-purchase companies with the State’s guarantees to create conditions for enterprises to get access to and use financial sources, new technologies and technical equipment.

4. Solutions and policies to develop urban traffic

a/ Investing in the development of urban traffic infrastructures along the direction of diversification of transport modes:

To expeditiously build modern urban traffic infrastructure to meet the fast-growing travel demands in big cities and solve the situation of traffic congestion. To accelerate the building of the massive transport system consisting of tramways, overhead railways and subways in big cities. The State shall adopt policies to prioritize and concentrate investment from urban traffic infrastructure projects for Hanoi capital and Ho Chi Minh city.

b/ Developing mass transit:

To encourage all economic sectors to participate in mass transit. When necessary, the State shall establish public-utility enterprises to ensure mass transit.

To provide investment support for mass transit enterprises in diversified forms such as credit preferences, preferences after means investment and procurement or price subsidies.

To encourage the use of domestically assembled means for mass transit by modes of sale on deferred payment, sale on installment payment, and to adopt preferential policies for the import of spare parts and accessories which cannot be manufactured at home, etc.

To exempt or reduce to the utmost law-prescribed taxes and/or charges for enterprises engaged in urban mass transit, such as: enterprise income tax, value added tax, land use tax and land rent (for land used for building terminals, parking lots, garages), parking charges and road and bridge tolls for urban mass transit means being buses.

To raise the quality of mass transit services. To permit only enterprises which fully meet the criteria (on transport means, service quality, etc.) to participate in mass transit, thus ensuring passengers’ interests.

5. Solutions and policies to develop rural traffic

Continuing to step up the implementation of the “State and people join efforts” undertaking in order to fully mobilize resources among the population and concurrently to raise their sense of responsibility for development of local traffic infrastructure.

Prioritizing ODA capital and local budgets for the development of rural traffic in combination with the agricultural and rural industrialization and modernization.

Providing supports for enterprises engaged in transportation to deep-lying and remote areas, islands, areas with economic difficulties and serving the contingency tasks.

Reducing the fees and charges for registration of means in rural areas, deep-lying and remote areas.

Adopting policies to provide credit preferences for enterprises and individuals that purchase road and waterway transport means in service of rural, deep-lying and remote areas.

6. Solutions to international integration and competition

Developing external traffic infrastructures (international airports and seaports, trans-Asian railway and road axes) up to the advanced technical and technological standards of regional countries, and capable of receiving large-sized ships and airplanes.

The State prioritizes capital and resources for development of Vietnam’s modern seagoing-ship and airplane fleets, thus raising their international competitiveness.

Developing synchronous transport means and loading-unloading technologies which are up to regional and international standards.

Raising the service quality and standards and reducing maximum transport duration, with means’ technical norms up to those of regional countries.

Reducing transport costs, ensuring competitive freight rates on regional and world markets.

Reorganizing and rearranging the transport units in order to form transport conglomerates strong enough for integration and competition in the region and the world. Diversifying the forms of joint ventures between communication and transport units and foreign enterprises with capital contribution percentages favorable to Vietnamese parties in a long time.

Using modern production chains, raising professional level of skilled workers and managerial officials in communication and transport industrial production.

Applying laws, regulations and policies to encourage transportation to and through Vietnam in conformity with international practices.

Working out specific integration schedules.

7. Solutions and policies to renew the management organization and administrative reform

Studying and reorganizing the management units after the functional unit models, separating the State management function from the production and business management, rationally assigning and decentralizing the management responsibilities in order to make managerial apparatus neat and effective in operation.

Renewing operations of State-owned enterprises, stepping up the equitization program, realizing the undertaking of assignment, sale, business contracting and lease of State-owned enterprises. Encouraging all economic sectors to take part in public services such as building and maintenance of traffic infrastructures and protection of urban traffic environment by modes of transfer of right to collect tolls, contracting of revenues and expenditures for maintaining traffic infrastructures, in order to reduce costs, raise quality of works and increase re-investment capital sources.

Enhancing the strict management of plannings at all levels.

Strengthening the organization and improving institutions of management of rural traffic (at district and commune levels).

Formulating the Railway Traffic Law; amending and supplementing the Maritime Code, the Aviation Law and other legal documents, thus creating legal bases for State management over communication and transport.

8. Policies on application of new sciences and technologies

To study, elaborate and improve the standards, procedures, rules, etc., applicable to the domains of survey, designing, construction, pre-acceptance test, maintenance as well as materials and technologies used in the building of communication and transport works. To encourage the application of new technologies and materials.

To step by step modernize transport means, apply advanced technologies and transport modes, particularly multi-modal transport.

To encourage the purchase of construction machinery and equipment accompanied with the transfer of advanced technologies. To limit the import of used means and equipment; to prohibit the import of obsolete means, equipment and technologies.

To apply information technology to the administration and management.

To raise the capability of research institutes, experimental and testing centers, etc.

9. Policies to develop human resources

To implement the program on training and retraining of managerial officials and skilled workers in order to raise their professional skills and capacity.

To broaden training modes: short-term, long-term, at-home and overseas trainings, training at schools and classes and self-training.

To apply the regime of public recruitment through examinations and probations.

To apply the preferential treatment to laborers engaged in the maintenance and regular repair of traffic infrastructures in deep-lying and remote areas, doing heavy and dangerous jobs, or working in islands for a long time, etc.

Article 2.- Organization of implementation

1. The Transport Ministry shall assume the prime responsibility for, and coordinate with the ministries, branches and People’s Committees of the provinces and centrally-run cities in, organizing the implementation of the Strategy on Development of Vietnam’s Communication and Transport till 2020; and periodically updating and proposing supplements to the Strategy to meet the national development requirements.

2. The ministries, branches and People’s Committees of the provinces and centrally-run cities shall, within the ambit of their respective functions, tasks and powers, have to coordinate with the Transport Ministry in performing the tasks and achieving the objectives of the communication and transport development strategy, ensuring the uniformity and consistency with the implementation of the branch and local socio-economic development plans.

Article 3.- This Decision takes effect 15 days after its publication in the Official Gazette.

Article 4.- The ministers, the heads of the ministerial-level agencies, the heads of the Government-attached agencies and the presidents of the People’s Committees of the provinces and centrally-run cities shall have to implement this Decision.

Prime Minister
PHAN VAN KHAI